Aspen Group Limited · ASX:APZ
Aspen — Investor Presentation (September 2022)
24 slides from Aspen's investor presentation, Sep 13, 2022
Slide 1: Aspen Group Equity Raising
Not for release to US wire services or Coorong Quays, Hindmarsh Island distribution in the United States For personal use only Aspen Group Equity Raising Aspen Group Equity Raising 13 September 2022 9 June 2022 1
Slide 2: Aspen's Business Model
Aspen’s Business Model For personal use only Aspen Provides Quality Accommodation on Competitive Terms to Australian Households Sustainable Ecological Footprint Customer-centric business model servicing households that can Governance afford no more than $400 weekly rent or $400k purchase price Aspen
Slide 3: Massive Demand for Aspen's Lower Cost Accommodation
Massive Demand for Aspen’s Lower Cost Accommodation Aspen’s core target market is the c.40% of Australian households For personal use only who can afford to pay no more than $400pw in rent... Market in Equilibrium: • Supply / Demand in Balance • Average / Normal Returns Aspen’s Target Market Market
Slide 4: Aspen Highlights
Aspen Highlights The demand for more affordable accommodation is significant in Australia’s $9 trillion residential property market… For personal use only Fully integrated owner, operator, developer platform that is adding value • Operating capabilities for both long and short stay customers - optim
Slide 5: Summary of FY22 Results – Operating Earnings & Distributions
Summary of FY22 Results – Operating Earnings & Distributions Profits increased materially in a challenging environment with portfolio positioned for continued growth... For personal use only Property NOI Total Revenue Operating Earnings1 Operating EPS DPS $14.8m +17% $46m $11.8m 8.65 cents 6.60 cent
Slide 6: Summary of FY22 Results - Capital
Summary of FY22 Results - Capital Aspen has continued to grow its business, portfolio and value while managing risks... For personal use only Portfolio WACR1 Net Debt Approved dwellings/sites Total Asset Value NAV per security 6.4% $117m 4,646 $452m $1.79 Value per dwelling/site Gearing 3 +69% +84%
Slide 7: Performance Update - First Months FY23 (Unaudited)
Performance Update - First 2 Months FY23 (Unaudited) Continued growth across the portfolio... For personal use only Main Growth Drivers $m FY22 YTD August FY23 YTD August Growth § Strong rental growth across the portfolio due to low vacancy rates, Operations higher building costs and supply Revenue
Slide 8: Performance Update - First Months FY23 (Unaudited)
Performance Update - First 2 Months FY23 (Unaudited) For personal use only Property Operations Property Development Total Revenue $8.6m – up 53% compared to previous corresponding Total Development Profit of $1.06m equates to 30% of entire FY22 period (pcp) result of $3.51m - Up 32% on a like-for-li
Slide 9: Equity Raising
For personal use only Equity Raising 9
Slide 10: Equity Raising Summary
Equity Raising Summary § Aspen Group, comprising Aspen Group Limited and Aspen Property Trust (Aspen), intends to undertake an equity raising comprising: Equity Raising For personal use only - An institutional placement to raise $36.34 million (the Institutional Placement) - A security purchase plan
Slide 11: Impact of the Equity Raising – Guidance Maintained
Impact of the Equity Raising – Guidance Maintained Audited accounts at 30 June 2022 adjusted for the Institutional Placement With the net proceeds from the Institutional Placement being used For personal use only (assumes $nil raised in the SPP): for debt reduction, the initial pro forma impacts on
Slide 12: Timetable
Timetable For personal use only Key Event Date Record Date for SPP Monday 12 September 2022 Trading halt and announcement of Equity Raising Tuesday 13 September 2022 Institutional Placement bookbuild opens Tuesday 13 September 2022 Trading halt lifted Wednesday 14 September 2022 Settlement of Securi
Slide 13: Appendices
For personal use only Appendices 13
Slide 14: Appendix 1: International Offer Restrictions
Appendix 1: International Offer Restrictions This document does not constitute an offer of new stapled securities ("New Securities") of Aspen in any jurisdiction in which it would be unlawful. In particular, this For personal use only document may not be distributed to any person, and the New Securi
Slide 15: Appendix 1: International Offer Restrictions
Appendix 1: International Offer Restrictions For personal use only Singapore South Africa • This document has not been registered as a prospectus with the Monetary Authority of • This document has not been approved or passed on in any way by the Financial Services Singapore ("MAS") and, accordingly,
Slide 16: Appendix 2: Key Terms of the Placement Agreement
Appendix 2: Key Terms of the Placement Agreement Aspen Group Limited (Company) and Evolution Trustees Limited as responsible entity of the Aspen Property Trust • any Group Member is or becomes subject of an Insolvency Event (Trust) (each, an Issuer and together, the Issuers) have entered into a plac
Slide 17: Appendix 2: Key Terms of the Placement Agreement (cont'd)
Appendix 2: Key Terms of the Placement Agreement (cont’d) • (*) any of the following occur: hostilities not presently existing at the date of the Placement Agreement commence (whether war has been declared or not) or a major escalation in existing hostilities occurs For personal use only (whether wa
Slide 18: Appendix 3: Risks
Appendix 3: Risks General Risks For personal use only This section discusses some of the key risks associated with an investment in Aspen. A number of risks and uncertainties may adversely affect the operating and financial performance or position of Aspen and in turn affect the value of Aspen secur
Slide 19: Appendix 3: Risks
Appendix 3: Risks For personal use only Aspen’s properties are subject to environmental risks including loss of property and profits due to bushfires, floods, cyclones, erosion of waterways and other events. These Environmental Risk risks and potential losses may increase in future as the climate co
Slide 20: Appendix 3: Risks
Appendix 3: Risks For personal use only Aspen operates in a variety of markets and offers various accommodation types within its residential, retirement and park communities. While there are barriers to entry for new Increased Competition operators, future developments that directly or indirectly co
Slide 21: Appendix 3: Risks
Appendix 3: Risks For personal use only Accounting Standards Changes to accounting standards may affect the reported earnings of Aspen from time to time. The Placement is not conditional on deploying the proceeds into the specified acquisition of assets. There is a risk that acquisitions may not occ
Slide 22: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Aspen Group Limited ("Company") and Evolution Trustees Limited as responsible entity of the Aspen Property Trust ("Trust" and together with the Company, “Aspen”) in connection with Aspen's proposed institutional placement of new
Slide 23: Disclaimer continued
Disclaimer continued For personal use only MA Moelis Australia Advisory Pty Ltd ("MA Moelis") and Taylor Collison Limited (together, the "Lead Managers") are acting as joint lead managers of the Placement, and MA Moelis is acting as exclusive underwriter of the Placement. The SPP is not underwritten
Slide 24: Disclaimer continued
Disclaimer continued For personal use only Statements made in this presentation and the announcement to which it is attached are made only as at the date of this presentation and the information remains subject to change without notice. No person is under any obligation, and does not undertake, to p